Ver Angola

Banking and Insurance

BCI recapitalisation will cost 57 billion kwanzas

It will take 57 billion kwanzas to recapitalise the Bank for Trade and Industry (BCI). The recapitalisation of the bank will be divided into two parts: the first takes place on 30 June, where 30 billion kwanzas will be used. The second phase will take place by the end of the year, where the remaining 27 billion kwanzas will be used.

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In order to proceed with the recapitalisation, an asset quality assessment was made and International Financial Reporting Standard 9 (IFR9) was implemented. After the assessment, the bank made several adjustments to ensure that the restructuring plan is successful.

According to a statement by BCI's Board of Directors, quoted by Angop, to apply the IFR9, the 2018 finances and the increase in credit impairment and other assets for 2019 had to be restated.

The Board also made it known that in order to comply with the rules imposed by the Regulator, BCI applied several measures in credit and investment securities. These measures aim to strengthen shareholder commitment and also ensure the sustainability of the bank.

After assessing the bank's finances during the first three months of 2020, the management decided to implement some points of the long-term strategic plan to be implemented between 2020 and 2023.

In addition, a short-term plan was also drawn up to review service contract budgets, define a credit recovery strategy, maintain human capital, among others.

Finally, the board recognised that the commitment of all employees has been crucial to the successful implementation of BCI's restructuring plan.

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